Gravestone Doji Candlestick Pattern
Gravestone doji is a bearish candle. A gravestone doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. Gravestone Doji Candlestick Pattern
What is Doji?
You are shown some doji in the image below. Doji is created then. When there is no difference between the opening price and the closing price, or the opening price and the closing price are the same.
Types of Doji
There are three types of Doji.
- Gravestone Doji
- Dragonfly Doji
- Long-Legged Doji
Today we are going to discuss gravestone doji.
Gravestone Doji
Whenever you see Gravestone Doji. You must understand that the trend is going to be reversal. This is a Bearish candlestick pattern. In this, the open price and the close price are the same. It makes long upper shadow. Gravestone Doji forms at the high of an uptrend.
Gravestone Doji Example
Here you can clearly see it. The first is the uptrend. After that a Doji is visible at the high of the uptrend. This is Gravestone Doji. Soon after, the trend turned reversal to a down trend.
Trade Setup
Let us now know how to do trading with the help of Gravestone Doji. If you are an aggressive trader. In such a situation when there is a breakdown of Gravestone Doji. Then you can create selling position in it.
On the other hand, if you want to trade safely, then you can create a Sell position on the breakdown of the flame of the candle formed before the Gravestone Doji. And you can stay in your position till then. until you get the signal for trend reversal.
Chart Example
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